Price it right and it will sell. Sometimes, the simplest advice is the hardest to implement, especially when it comes to pricing real estate. But this tried, tested and true approach is the most effective way to approach the selling process of your home.
There are some who believe that underpricing a property is the way to start a bidding war, and while it’s very exciting as a seller to think that more than one buyer is going to put an offer in on your property, be careful not to get caught up in all the hype.
The bottom line is: nobody can 100% guarantee that a property will sell...at any given price point.
The flipside of underpricing a property is overpricing a property. For example, one property last year started with a listing price of $379,000, which, for the neighbourhood, was one of the highest list prices I had seen for that style and size of house in recent years.
Needless to say, at an aggressive list price for the area, the property didn’t see much action. However, the sellers and agent were tactful in their approach and dropped the price of the property by $20,000 every month. Two months after initially listing, they found themselves at a list price of $359,000, which eventually started to generate some action. A buyer came in, made an offer, and the house sold for in the $340,000s.
While the sellers and agent were hoping to maybe capitalize on some positive action the neighbourhood was getting on other high solds in recent months, they didn’t quite get the initial price they were looking for. Luckily, they stayed focused and were diligent on the end goal of getting the property sold in a reasonable amount of time and dropped the price accordingly.
It’s ok to start high, you just need to prepare yourself for the reality that lightning may not strike and you’ll need to consistently drop the price to get the property sold.
Comparative Market Analysis (CMA) is the first step in deciding the price we should list at. We’ll take a close look at recent trends in your neighbourhood, looking at all the past solds and the price they sold at. It’s important to note that while you might see the list price of a home that’s up for sale, see the sold sign, and think that’s what it sold for, the true sold price may be quite different. A lot goes on behind the scenes in negotiations, and I’ve seen properties that initially were listed for a high price, but end up selling for a lot lower.
The bottom line is: if you price it right, it will sell. Price it wrong, there’s a good chance it will be on the market a long time (and maybe won't even sell). Nothing is worse than having your house up for sale for an extended period of time. The goal is, afterall, to sell it, right? I know there are always exceptions to the rule, but the statistics consistently show that when you price a house well, it will sell. A lot goes into pricing a home, and working with an experienced agent who knows how to assess the market and analyze current and past trends is your best bet in pricing a property properly (the first time).
If you find yourself mulling over the idea of putting your London, Ontario house up for sale this summer season but just aren’t sure what you could get for it, get in touch with me and I’ll provide you with a FREE Comparative Market Analysis.
Any questions? I’m always here to help.
Thanks for reading!
Your London, Ontario Real Estate Agent